I looked at a place in Pittsburgh decent neighborhood seemed to be a pretty good wholesale deal listed at 29900 from pic's when I got there probably a few squatters living there at the time destroyed a lot mostly cosmetic told wholesaler would not be interested in the property at that price in that condition offered 20000 he responded if I can renegotiate I might get 21 or 22 thousand I told him 20000 is my number and he assured me squatters would not be an issue 2 weeks go by he calls yesterday and tells me I can have it for 20000 I go back over to property only to see that there have been squatters in the house also 2 windows broken that were not broken before house is dirtier than before and a slight bit of more damage than before I give him a call told him I offered the price I felt comfortable with based on the condition of what the property was in. So I told him I would honor agreement with the contingency of both Windows repaired and a complete clean out of all personal items so squatters would not return. He replied he would talk to owners and see what he could do. In the mean time however in a similar neighborhood I have found a duplex for 40000 and needs a lot less work and I really want to blow the wholesaler off, and I'm sure he worked hard to get price reduced by 10000. This would be my second property purchase. I own first one out right and both of these properties are cash only deals I could by 1 and pull equity out of both homes i own outright and do all the deals but I would pretty much be completely broke and not have any cash reserves for repairs or emergency repairs I would prefer to only do one deal questions comments advice replys. Thx BP community
Its not a done deal till the pen strokes the paper and a deposit is made . You got to do whats best for you .
@Andy Ballester , I don't care how much "trouble" the wholesaler went through pursuing the deal with you. The bottom line is he couldn't produce the results you wanted when you wanted them. If he could have moved faster, the deal would already be done. If you choose not to purchase the property he represents in order to purchase a duplex, that is 100% your right. Not just your right, but it's your obligation to yourself (and your family if you have one) to make the best decision for your future.
If you have concluded the duplex is better for you, BY ALL MEANS, get the friggin' duplex.
If you're not 100% - walk. If it were me I would at least thank the wholesaler for all their work and their willingness to try to get the deal to work. If you feel good about the wholesaler tell him/her to keep you in mind for the next deal they find.
I agree with @Jerry Kisasonak if the deal doesn't make sense then walk.
If you are only worried about your reserves then look into alternative ways to pay for the deal, I have been purchasing small deals with hard money and then refinancing them after I have them rehabbed and have a tenant in place.
Think outside the box.
@Brandon Turner has a great book about creative deals you should check it out, I purchased the book and audio book and it was well worth the price.
Ian Hoover, Deacon Hoover Real Estate Advisors | [email protected] | 724‑492‑8312
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